Press Release
August 14, 2007

GOV'T ASKED HOW IT IS HELPING OFWs AND FAMILIES EASE THE IMPACT OF LOWER PESO EQUIVALENT OF DOLLAR EARNINGS

Senate Minority Leader Aquilino "Nene" Q. Pimentel, Jr. (PDP-Laban) today called for a Senate inquiry into the circumstances behind the continuing appreciation of the peso against the US dollars and its impact on the lives of families of overseas Filipino workers.

Since a strong peso means less value for the dollar remittances of the OFWs, Pimentel said the government should institute measures to mitigate its negative effects on the OFWs and their families.

From more than P52 to the dollar, at the start of 2007, the exchange rate now ranges from P45.43 to P45.75 to the dollar.

"The continuous strengthening of the peso against the US dollar is benefiting our national economy by improving our country's balance of payments and allowing the government to service the country's debts at a lower cost, among others," Pimentel said in filing Senate Resolution 62 requesting for a legislative inquiry into the matter.

"On the other hand, our overseas Filipino workers and their families here in the country complain that they are severely affected by the peso appreciation."

Pimentel said the OFWs in general are grumbling that while their salaries remain the same, the value of their dollar remittances to the families back home has drastically declined.

He also noted that while the rising value of the peso is benefitting industrial companies importing raw materials and equipment in terms of reduced cost, this has caused enormous losses to export-oriented industries in terms of much lower peso yields for their dollar-denominated revenues.

The minority leader noted that many export-oriented firms are now in financial distress due to current trend in the peso-dollar exchange rate. And yet, he said the government seems to be impervious to their present difficulties.

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